A test of competition in Brazilian banking

This paper implements an empirical test of market power for Brazilian banking based on Bresnahan (1982) and Lau (1982). A dynamic version of the test is applied. The results show that the banking industry inBrazilis highly competitive, although the perfect competition hypothesis is rejected. The hyp...

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Bibliographic Details
Author: Nakane, Márcio Issao
Format: article
Status:Published version
Publication Date:2002
Country:Brasil
Institution:Universidade de São Paulo (USP)
Repository:Estudos Econômicos (São Paulo)
Language:Portuguese
OAI Identifier:oai:revistas.usp.br:article/117799
Online Access:https://www.revistas.usp.br/ee/article/view/117799
Access Level:Open access
Keyword:banking competition
Brazilian banking
concorrência bancária
bancos brasileiros
Description
Summary:This paper implements an empirical test of market power for Brazilian banking based on Bresnahan (1982) and Lau (1982). A dynamic version of the test is applied. The results show that the banking industry inBrazilis highly competitive, although the perfect competition hypothesis is rejected. The hypothesis that Brazilian banks behave like a cartel arrangement is also rejected.